Capital market in China grows stronger

China's capital market has shown strong vitality, with companies engaged in technological innovation, advanced manufacturing and green development expected to usher in new listing opportunities in 2024, mainly driven by the implementation of the registration-based IPO system, said a new report released by global consultancy PwC.

China is still leading the amount of financing in IPOs in global capital markets, despite the recent temporary tightening pace of IPOs nationwide, PwC said, while noting the domestic capital market remained the main listing option for Chinese mainland technology, media and telecommunications (TMT) enterprises in the second half of 2023.

According to the report, the Hong Kong bourse's move to further lower the listing threshold for technology companies has demonstrated its determination to attract innovation-oriented companies to go public on the Hong Kong capital market.

Moreover, the number of Chinese mainland companies going public in the United States rebounded last year, the report added. The supportive attitude from authorities for qualified private enterprises to list overseas, as well as the maturity of regulations for the filing-based management of Chinese companies' overseas IPOs will pave the way for Chinese mainland TMT companies seeking public floats abroad.

The listing of domestic innovative TMT companies in the US will likely further rebound in 2024, PwC estimated.